If you were charged by PHH Mortgage Corporation for a Lender-Placed Insurance Policy

You Could Get a Refund From a Class Action Settlement

A Settlement has been reached with mortgage servicer PHH Mortgage Corporation (“PHH”) and several insurance companies regarding lender-placed insurance. The Settlement provides refunds or credits to eligible persons who submit valid Claim Forms.

On July 27, 2017, the District Court for the District of New Jersey granted Final Approval of the Settlement so that payments can be made. More information is available on the Important Documents page.

What is the Lawsuit About?

The lawsuit involves lender-placed insurance (“LPI”), also known as “creditor-placed” or “forced-placed” insurance. A bank or mortgage servicer may arrange for the placement of LPI on a property when it is believed that the borrower’s insurance is insufficient, when the borrower’s policy has lapsed, or the borrower has not provided sufficient proof of insurance coverage on the property.

The lawsuit claims that PHH received payments from the insurance companies. The lawsuit claims that these and other practices caused charges to borrowers to be excessive. Defendants deny all allegations. Both sides have agreed to a Settlement to avoid the cost and risk of trial.

Am I Included?

You are a member of the class if you were charged by PHH for residential LPI policies between January 1, 2006 and July 31, 2015. The LPI policies included in the Settlement provided hazard, flood, flood gap or wind-only coverage.

What are the Benefits?

Class Members who submitted valid Claim Forms will receive a cash award or a credit (towards what they currently owe PHH) of an amount equal to 11.5% or 6% of the Net Premium of the LPI Policy charged to the claimant during the Class Period by PHH. The percentage amount depends on when you were charged and what type of LPI policy you received.

If you paid some or all of the LPI premium: You will receive a check payment.

If you have not paid any LPI premium and still owe PHH for it: You will receive an escrow account credit, unless Defendants decide to send checks instead.

The Defendants have also agreed to injunctive relief, which means they will stop some business practices at issue in the lawsuit.

How do I get Benefits?

To receive benefits, you must have submitted a Claim Form, along with the required verification documents. The Claim Form deadline to submit a Claim Form has passed. More information is available on the Important Documents page.

What are my Other Options?

If you did not want to be legally bound by this Settlement, then you must have excluded yourself by June 27, 2017. Otherwise you won’t be able to sue PHH about the claims in this case. Excluding yourself means that you won’t be able to get a payment from this Settlement. If you did not exclude yourself and stayed in the Settlement, you may have objected to the Settlement by June 27, 2017. These deadlines have passed. More information is available in the Settlement Notice, available on the Important Documents page.

The Court held a hearing in the case, known as In re PHH Lender Placed Insurance Litigation, on July 27, 2017, and approved the Settlement and Class Counsels’ request for attorneys’ fees and expenses of $4,232,898. The Court also approved Class Counsel's request for a payment of $5,000 each for the Class Representatives.

Key Dates

The key dates below reflect important dates and deadlines in connection with this class action. Please be sure to review these dates and take any appropriate steps necessary before these deadlines pass.